There’s a simple step Airbnb and Uber can take to make the sharing economy safer

Recent stories about an Airbnb guest accidentally dying and an Uber driver killing people have raised questions about who is responsible for safety in the sharing economy. The rise of the sharing economy has been ushered along by globalization. The sharing economy drives down costs and makes goods and services available to the multitude but lacks common standards and regulation.

Developing countries often don’t offer the same worker and consumer protections that developed nations do. This leaves developing countries more vulnerable to abuses, especially in new business models that inhabit the sharing economy. Developed nations like the U.S. are further ahead in regulating the sharing economy but still lag.

In order to address safety in the sharing economy, the author of the article recommends looking to the United Nations’ Guiding Principles on Business and Human Rights. The principles offer general guidance on evaluating who is potentially affected by by an organization’s business and how they could be affected. The author also recommends establishing a written code of conduct for contractors and performing audits to ensure all expectations are being met.

These suggestions and others need to be taken seriously by startups as they evaluate the safety of their business and industry. Companies that are forward looking will benefit with a competitive advantage by establishing a cohesive risk management plan and establishing an excellent safety record.

Source: Quartz